The Netherlands have a Rhineland culture. From a legal perspective it means that in general disputes are very often handled by alternative dispute resolutions. A substantial amount of disputes in consumer affairs, financial products, ICT or in construction are subject to ADR clauses.
Best international practices codified
As of January 1, 2015, a new Arbitration Law entered into force in the Netherlands. In it are the most modern best practices codified in international arbitration and the institute arbitration is made even more attractive for international business and trading.
Clarity and procedural quality
The intention is to provide advance optimal clarity to all parties. For example, a regimen is included that clarifies what parties can regulate themselves and what not. Also safeguards were introduced from regular procedural law to strengthen the courts independence. Arbitrators may for instance be forced into disclosure if a party may think not to be fully informed and it may even be challenged. Concurrent arbitrations can be aligned. The new law applies to arbitrations that were initiated after the entry into force.
Confidential, worldwide enforceable and informal
The main advantage of arbitration is that, in addition to its confidentiality, an arbitral award is practically worldwide enforceable under the New York Convention. Long-term local procedures may thereby be avoided. Another advantage is the relatively informal way in which proceedings can be initiated and its open structure. No international service by various foreign bailiffs but simply fax or email. It is up to the parties themselves to fill out the arrangement they are looking for.
Publisher: Meijerman van de Wouw Business Attorneys